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Why Freeport-McMoRan (FCX) Outpaced the Stock Market Today

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In the latest close session, Freeport-McMoRan (FCX - Free Report) was up +2.37% at $41.91. The stock exceeded the S&P 500, which registered a gain of 0.94% for the day. Elsewhere, the Dow gained 0.75%, while the tech-heavy Nasdaq added 1.52%.

The stock of mining company has risen by 7.68% in the past month, leading the Basic Materials sector's gain of 3.31% and the S&P 500's gain of 1.67%.

Investors will be eagerly watching for the performance of Freeport-McMoRan in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.45, showcasing a 2.17% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $6.93 billion, indicating a 4.69% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.65 per share and revenue of $27.03 billion, which would represent changes of +11.49% and +6.2%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Freeport-McMoRan. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.45% higher. Freeport-McMoRan presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Freeport-McMoRan is currently being traded at a Forward P/E ratio of 24.87. This represents a premium compared to its industry average Forward P/E of 23.25.

We can also see that FCX currently has a PEG ratio of 0.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Mining - Non Ferrous industry had an average PEG ratio of 0.89.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 41% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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